Fortuna Silver Mines announced that the illegal blockade at the San Jose Mine has been lifted. The news, which marks a positive turn for the company and the local economy, is accompanied by the resumption of operations at the mine and the processing plant.
In a press release, Fortuna Silver Mines reported that Compañía Minera Cuzcatlán and unionized workers have reached an agreement to restart operations. This resumption took effect on May 10 at 7:00 pm local time, marking the end of a period of uncertainty for the mine and its workers. "For over a decade, the San José Mine has been the largest employer in the Central Valley region, providing quality direct employment to over 1,200 people," stated the company.
The blockade started after a disagreement with this group of workers about the estimated amount of profit sharing the company is distributing among its workforce. Profit sharing is calculated transparently and payable in accordance with Mexican legislation. However, the blockaders demanded the company to increase the profit-sharing participation beyond what is stipulated by law.
Minera Cuzcatlán, the Mexican subsidiary of Fortuna Silver Mines, recently announced it will invest US$18 million to extend the useful life of its San Jose mine in Oaxaca. The company also expressed that it is not interested in participating in the lithium industry.
"The projected US$18 million is for the development of the existing mine. We are always looking for resources to increase the useful life of the mine," said Luiz Camargo, Country Director, Compañía Minera Cuzcatlán. Regarding permits, Camargo emphasized that none of the new works require additional permits.
Camargo noted that 2023 may shape up to be a good year for mining, as gold and silver prices have risen due to fears of economic recession and a weakening dollar. “The increase in gold and silver commodities will help us. They will allow the company to use this benefit mainly to mitigate the increase in inputs caused by inflation,” said Camargo.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with four operating mines in Argentina, Burkina Faso, Mexico and Peru, and a fifth mine under construction in Côte d’Ivoire. Sustainability is integral to all its operations and relationships. It produces gold and silver and generates shared value over the long-term for its stakeholders through efficient production, environmental protection and social responsibility strategies.